MAC Macerich Co

SANTA MONICA, Calif., Feb. 11 /PRNewswire-FirstCall/ -- The Macerich Company (NYSE:MAC) today announced results of operations for the quarter ended December 31, 2009 which included total funds from operations ("FFO") diluted of $92.7 million or $.90 per share-diluted, compared to $1.92 per share-diluted for the quarter ended December 31, 2008. During the quarter ended December 31, 2009, an impairment charge of $6.7 million or $.07 per share was incurred. During the quarter ended December 31, 2008, there was a gain on early extinguishment of debt of $84 million or $.95 per share. For the year ended December 31, 2009, FFO-diluted was $344.1 million, or $3.70 per share-diluted compared to $461.5 million or $5.22 per share-diluted for the year ended December 31, 2008. Net loss available to common stockholders for the quarter ended December 31, 2009 was $14.4 million or $.18 per share-diluted compared to net income available to common stockholders of $50.9 million or $.67 per share-diluted for the quarter ended December 31, 2008. For the year ended December 31, 2009, net income available to common stockholders was $120.7 million or $1.45 per share-diluted compared to $161.9 million or $2.17 per share-diluted for the year ended December 31, 2008. The Company's definition of FFO is in accordance with the definition provided by the National Association of Real Estate Investment Trusts ("NAREIT"). A reconciliation of net income to FFO and net income per common share-diluted ("EPS") to FFO per share-diluted is included in the financial tables accompanying this press release. Recent Activity: -- During 2009, the Company completed the sale of 25 non-core assets for net proceeds of $151 million. Eight of those transactions, totaling $73 million in net proceeds, closed in the fourth quarter. -- On October 27, 2009, the Company closed a common stock offering of 13.8 million shares that raised net proceeds of $383 million. -- During 2009, the Company reduced its overall debt by $1.36 billion. The deleveraging resulted from applying cash from operations, joint venture transactions, non-core asset sales and the equity offering in October. -- Portfolio occupancy at December 31, 2009 was 91.1% compared to 92.3% at December 31, 2008. -- Tenant sales per square foot were $407 for the twelve month period ended December 31, 2009 compared to sales per square foot of $441 for the year ended December 31, 2008. Commenting on the quarter and the year, Arthur Coppola chairman and chief executive officer of Macerich stated, "Much of our focus throughout the year was on improving our balance sheet. That effort has paid off with a significant debt reduction resulting from the execution of our capital plan. Our capital plan for 2009 included joint venturing existing assets, selling non-core assets, issuing stock dividends and a major equity issuance. During the year we generated over $1.14 billion in cash that has been applied towards our de-leveraging goals." Redevelopment and Development Activity The Company recently announced deals with Tory Burch, Ben Bridge Jewelers and Charles David for the new Santa Monica Place, slated to open August 2010 with anchors Bloomingdale's and Nordstrom. The new Northgate Mall, Macerich's 722,948-square-foot property in Marin County, California, opened on November 12, 2009. New anchor Kohl's was joined by retailers H&M, BJ's Restaurant, Children's Place, Chipotle, Gymboree, Hot Topic, PacSun, Panera Bread, See's Candies, Sunglass Hut, Tilly's and Vans. Macerich is a fully integrated self-managed and self-administered real estate investment trust, which focuses on the acquisition, leasing, management, development and redevelopment of regional malls throughout the United States. The Company is the sole general partner and owns an 89% ownership interest in The Macerich Partnership, L.P. Macerich now owns approximately 75 million square feet of gross leaseable area consisting primarily of interests in 72 regional malls. Additional information about Macerich can be obtained from the Company's website at http://www.macerich.com/. Investor Conference Call The Company will provide an online Web simulcast and rebroadcast of its quarterly earnings conference call. The call will be available on The Macerich Company's website at http://www.macerich.com/ (Investing Section) and through CCBN at http://www.earnings.com/. The call begins today, February 11th at 10:30 AM Pacific Time. To listen to the call, please go to any of these websites at least 15 minutes prior to the call in order to register and download audio software if needed. An online replay at http://www.macerich.com/ (Investing Section) will be available for one year after the call. The Company will publish a supplemental financial information package which will be available at http://www.macerich.com/ in the Investing Section. It will also be furnished to the SEC as part of a Current Report on Form 8-K. Note: This release contains statements that constitute forward-looking statements. Stockholders are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks, uncertainties and other factors that may cause actual results, performance or achievements of the Company to vary materially from those anticipated, expected or projected. Such factors include, among others, general industry, economic and business conditions, which will, among other things, affect demand for retail space or retail goods, availability and creditworthiness of current and prospective tenants, anchor or tenant bankruptcies, closures, mergers or consolidations, lease rates and terms, interest rate fluctuations, availability, terms and cost of financing and operating expenses; adverse changes in the real estate markets including, among other things, competition from other companies, retail formats and technology, risks of real estate development and redevelopment, acquisitions and dispositions; the liquidity of real estate investments, governmental actions and initiatives (including legislative and regulatory changes); environmental and safety requirements; and terrorist activities which could adversely affect all of the above factors. The reader is directed to the Company's various filings with the Securities and Exchange Commission, including the Annual Report on Form 10-K for the year ended December 31, 2008 and the Quarterly Reports on Form 10-Q, for a discussion of such risks and uncertainties, which discussion is incorporated herein by reference. The Company does not intend, and undertakes no obligation, to update any forward-looking information to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events unless required by law to do so. (See attached tables) THE MACERICH COMPANY FINANCIAL HIGHLIGHTS (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) Results of Operations: -------------------------------------------------------- Results before Impact of Results after Discontinued Discontinued Discontinued Operations (a) Operations (a) Operations (a) --------------- --------------- --------------- For the Three For the Three For the Three Months Months Months Ended December 31, Ended December 31, Ended December 31, ------------------ -------------- ------------------ Unaudited Unaudited --------- --------- 2009 2008 (b) 2009 2008 2009 2008 (b) ---- -------- ---- ---- ---- -------- Minimum rents $113,829 $151,128 (932) ($3,664) $112,897 $147,464 Percentage rents 7,247 9,320 - (45) 7,247 9,275 Tenant recoveries 59,338 62,470 (373) (1,232) 58,965 61,238 Management Companies' revenues 12,422 10,382 - - 12,422 10,382 Other income 8,439 9,947 (2) (19) 8,437 9,928 ----- ----- --- --- ----- ----- Total revenues 201,275 243,247 (1,307) (4,960) 199,968 238,287 -------------- ------- ------- ------ ------ ------- ------- Shopping center and operating expenses 59,022 73,880 (282) (1,765) 58,740 72,115 Management Companies' operating expenses 20,602 19,185 - - 20,602 19,185 Income tax (benefit) expense (3,883) 1,876 - - (3,883) 1,876 Depreciation and amortization 75,656 93,802 (272) (3,004) 75,384 90,798 REIT general and administrative expenses 8,944 5,101 - - 8,944 5,101 Interest expense (b) 59,408 74,860 1 35 59,409 74,895 Gain on early extinguishment of debt 15 84,143 - - 15 84,143 Loss on sale or write down of assets (14,965) (26,421) 17,126 (1,436) 2,161 (27,857) Co-venture interests (c) (2,262) - - - (2,262) - Equity in income of unconsolidated joint ventures 18,513 26,659 - - 18,513 26,659 (Loss) income from continuing operations (17,173) 58,924 16,372 (1,662) (801) 57,262 Discontinued operations: (Loss) gain on sale or disposition of assets - - (17,126) 1,436 (17,126) 1,436 Income from discontinued operations - - 754 226 754 226 Total (loss) income from discontinued operations - - (16,372) 1,662 (16,372) 1,662 Net (loss) income (17,173) 58,924 - - (17,173) 58,924 Less net (loss) income attributable to noncontrolling interests (2,797) 7,972 - - (2,797) 7,972 Net (loss) income attributable the Company (14,376) 50,952 - - (14,376) 50,952 Less preferred dividends (d) - - - - - - --- --- --- --- --- --- Net (loss) income available to common stockholders ($14,376) $50,952 - - ($14,376) $50,952 ------------- -------- ------- --- --- -------- ------- Average number of shares outstanding - basic 91,102 76,194 91,102 76,194 --------------- ------ ------ ------ ------ Average shares outstanding, assuming full conversion of OP Units (e) 103,026 88,510 103,026 88,510 ------- ------ ------- ------ Average shares outstanding - Funds From Operations ("FFO") - diluted (d) (e) 103,026 88,703 103,026 88,703 ---------------- ------- ------ ------- ------ Per share (loss) income- diluted before discontinued operations - - ($0.02) $0.65 ---------------- --- --- ------ ----- Net (loss) income per share-basic (b) ($0.17) $0.67 ($0.17) $0.67 ------------- ------ ----- ------ ----- Net (loss) income per share-diluted (b) (d) (e) ($0.18) $0.67 ($0.18) $0.67 ---------------- ------ ----- ------ ----- Dividend declared per share $0.60 $0.80 $0.60 $0.80 ------------- ----- ----- ----- ----- FFO - basic (b) (e) (f) $92,701 $169,879 $92,701 $169,879 ------------- ------- -------- ------- -------- FFO - diluted (b) (d) (e) (f) $92,701 $170,076 $92,701 $170,076 ---------------- ------- -------- ------- -------- FFO per share- basic (b) (e) (f) $0.90 $1.92 $0.90 $1.92 ---------------- ----- ----- ----- ----- FFO per share- diluted (b) (d) (e) (f) $0.90 $1.92 $0.90 $1.92 --------------- ----- ----- ----- ----- THE MACERICH COMPANY FINANCIAL HIGHLIGHTS (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) Results of Operations: -------------------------------------------------------- Results before Impact of Results after Discontinued Discontinued Discontinued Operations (a) Operations (a) Operations (a) --------------- --------------- --------------- For the Twelve For the Twelve For the Twelve Months Months Months Ended December 31, Ended December 31, Ended December 31, ------------------ ------------------ ------------------ Unaudited Unaudited --------- --------- 2009 2008 (b) 2009 2008 2009 2008 (b) ---- -------- ---- ---- ---- -------- Minimum rents $484,709 $547,873 (10,448) ($19,302) $474,261 $528,571 Percentage rents 16,643 19,092 (12) (44) 16,631 19,048 Tenant recoveries 246,533 267,426 (2,432) (5,188) 244,101 262,238 Management Companies' revenues 40,757 40,716 - - 40,757 40,716 Other income 29,988 30,723 (84) (425) 29,904 30,298 ------ ------ --- ---- ------ ------ Total revenues 818,630 905,830 (12,976) (24,959) 805,654 880,871 -------------- ------- ------- ------- ------- ------- ------- Shopping center and operating expenses 262,526 288,286 (4,352) (6,673) 258,174 281,613 Management Companies' operating expenses 79,305 77,072 - - 79,305 77,072 Income tax (benefit) expense (4,761) 1,126 - - (4,761) 1,126 Depreciation and amortization 266,163 279,339 (4,100) (9,401) 262,063 269,938 REIT general and administrative expenses 25,933 16,520 - - 25,933 16,520 Interest expense (b) 267,039 295,160 6 (88) 267,045 295,072 Gain on early extinguishment of debt 29,161 84,143 - - 29,161 84,143 Gain (loss) on sale or write down of assets 121,766 68,714 40,171 (99,625) 161,937 (30,911) Co-venture interests (c) (2,262) - - - (2,262) - Equity in income of unconsolidated joint ventures 68,160 93,831 - - 68,160 93,831 Income from continuing operations 139,250 195,015 35,641 (108,422) 174,891 86,593 Discontinued operations: (Loss) gain on sale or disposition of assets - - (40,171) 99,625 (40,171) 99,625 Income from discontinued operations - - 4,530 8,797 4,530 8,797 Total (loss) income from discontinued operations - - (35,641) 108,422 (35,641) 108,422 Net income 139,250 195,015 - - 139,250 195,015 Less net income attributable to noncontrolling interests 18,508 28,966 - - 18,508 28,966 Net income attributable to the Company 120,742 166,049 - - 120,742 166,049 Less preferred dividends (d) - 4,124 - - - 4,124 --- ----- --- --- --- ----- Net income available to common stockholders $120,742 $161,925 - - $120,742 $161,925 ------------- -------- -------- --- --- -------- -------- Average number of shares outstanding - basic 81,226 74,319 81,226 74,319 --------------- ------ ------ ------ ------ Average shares outstanding, assuming full conversion of OP Units (e) 93,010 86,794 93,010 86,794 ------ ------ ------ ------ Average shares outstanding - Funds From Operations ("FFO") - diluted (d) (e) 93,010 88,446 93,010 88,446 ---------------- ------ ------ ------ ------ Per share income- diluted before discontinued operations - - $1.83 $0.92 ------------- --- --- ----- ----- Net income per share-basic (b) $1.45 $2.17 $1.45 $2.17 -------------- ----- ----- ----- ----- Net income per share-diluted (b) (d) (e) $1.45 $2.17 $1.45 $2.17 ---------------- ----- ----- ----- ----- Dividend declared per share $2.60 $3.20 $2.60 $3.20 ------------- ----- ----- ----- ----- FFO - basic (b) (e) (f) $344,108 $456,412 $344,108 $456,412 ------------- -------- -------- -------- -------- FFO - diluted (b) (d) (e) (f) $344,108 $461,515 $344,108 $461,515 ---------------- -------- -------- -------- -------- FFO per share- basic (b) (e) (f) $3.70 $5.26 $3.70 $5.26 ---------------- ----- ----- ----- ----- FFO per share- diluted (b) (d) (e) (f) $3.70 $5.22 $3.70 $5.22 --------------- ----- ----- ----- ----- THE MACERICH COMPANY FINANCIAL HIGHLIGHTS (IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS) (a) The following dispositions impacted the results for the three and twelve months ended December 31, 2009 and 2008: On April 25, 2005, in connection with the acquisition of Wilmorite Holdings, L.P. and its affiliates, the Company issued, as part of the consideration, participating and non-participating convertible preferred units in MACWH, LP. On January 1, 2008, a subsidiary of the Company, at the election of the holders, redeemed approximately 3.4 million participating convertible preferred units in exchange for the distribution of the interests in the entity which held that portion of the Wilmorite portfolio that consisted of Eastview Commons, Eastview Mall, Greece Ridge Center, Marketplace Mall and Pittsford Plaza ("Rochester Properties"). This exchange is referred to as the "Rochester Redemption." As a result of the Rochester Redemption , the Company recorded a gain of $99.1 million and classified the gain to discontinued operations. On December 19, 2008, the Company sold the fee simple and/or ground leasehold interests in three freestanding Mervyn's buildings to the Pacific Premier Retail Trust joint venture for $43.4 million. As a result of the sale, the Company has classified the results of operations to discontinued operations for all periods presented. During the twelve months ending December 31, 2009, the Company sold six non-core community centers for $83.2 million and sold five Kohl's stores for approximately $52.7 million. As a result of these sales, the Company has classified the results of operations to discontinued operations for all periods presented. (b) On January 1, 2009, the Company adopted new accounting standards associated with convertible debt. As a result, the Company retrospectively applied the standards to the three and twelve months ended December 31, 2008 resulting in an increase to interest expense of $3.1 million and $13.8 million, respectively, a decrease in gain on early extinguishment of debt of $11.1 million and $11.1 million, respectively, and a decrease to net income available to common stockholders of $12.3 million and $21.4 million, respectively, or $0.14 per share and $0.25 per share, respectively. In addition, FFO decreased for the three and twelve months ended December 31, 2008 by $14.3 million and $24.9 million, respectively, or by $0.16 per share and $0.28 per share, respectively. (c) This represents the outside partners' allocation of net income in the Chandler Fashion Center/Freehold Raceway Mall joint venture. (d) On February 25, 1998, the Company sold $100 million of convertible preferred stock representing 3.627 million shares. The convertible preferred shares were convertible on a 1 for 1 basis for common stock. On October 18, 2007, 560,000 shares of convertible preferred stock were converted to common shares. Additionally, on May 6, 2008, May 8, 2008 and September 18, 2008, 684,000, 1,338,860 and 1,044,271 shares of convertible preferred stock were converted to common shares, respectively. As of December 31, 2008, there was no convertible preferred stock outstanding. The preferred shares were not assumed converted for purposes of net income per share - diluted for the twelve months ended December 31, 2008 as they would be antidilutive to the calculation. The weighted average preferred shares are assumed converted for purposes of FFO per share - diluted for 2008. (e) The Macerich Partnership, L.P. (the "Operating Partnership" or the "OP") has operating partnership units ("OP units"). OP units can be converted into shares of Company common stock. Conversion of the OP units not owned by the Company has been assumed for purposes of calculating the FFO per share and the weighted average number of shares outstanding. The computation of average shares for FFO - diluted includes the effect of share and unit-based compensation plans and convertible senior notes using the treasury stock method. It also assumes conversion of MACWH, LP preferred and common units to the extent they are dilutive to the calculation. (f) The Company uses FFO in addition to net income to report its operating and financial results and considers FFO and FFO-diluted as supplemental measures for the real estate industry and a supplement to Generally Accepted Accounting Principles ("GAAP") measures. NAREIT defines FFO as net income (loss) (computed in accordance with GAAP), excluding gains (or losses) from extraordinary items and sales of depreciated operating properties, plus real estate related depreciation and amortization and after adjustments for unconsolidated partnerships and joint ventures. Adjustments for unconsolidated partnerships and joint ventures are calculated to reflect FFO on the same basis. FFO and FFO on a fully diluted basis are useful to investors in comparing operating and financial results between periods. This is especially true since FFO excludes real estate depreciation and amortization, as the Company believes real estate values fluctuate based on market conditions rather than depreciating in value ratably on a straight-line basis over time. FFO on a fully diluted basis is one of the measures investors find most useful in measuring the dilutive impact of outstanding convertible securities. FFO does not represent cash flow from operations as defined by GAAP, should not be considered as an alternative to net income as defined by GAAP and is not indicative of cash available to fund all cash flow needs. The Company also cautions that FFO as presented, may not be comparable to similarly titled measures reported by other real estate investment trusts. Gains or losses on sales of undepreciated assets and the impact of amortization of above/below market leases have been included in FFO. The inclusion of gains on sales of undepreciated assets increased FFO for the three and twelve months ended December 31, 2009 and 2008 by $1.3 million, $4.6 million, $0.3 million and $3.8 million, respectively, or by $0.01 per share, $0.05 per share, $0.00 per share and $0.04 per share, respectively. Additionally, amortization of above/below market leases increased FFO for the three and twelve months ended December 31, 2009 and 2008 by $3.3 million, $13.7 million, $14.2 million and $27.4 million, respectively, or by $0.03 per share, $0.15 per share, $0.16 per share and $0.31 per share, respectively. THE MACERICH COMPANY FINANCIAL HIGHLIGHTS (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) Pro rata share of joint ventures: ------------------------------------- For the Three For the Twelve Months Months Ended December 31, Ended December 31, --------------- --------------- Unaudited Unaudited ----------- ----------- 2009 2008 2009 2008 ---- ---- ---- ---- Revenues: Minimum rents $78,564 $70,398 $283,297 $272,660 Percentage rents 6,647 6,881 12,359 14,142 Tenant recoveries 37,247 33,480 136,434 130,552 Other 5,413 5,122 16,422 22,493 ----- ----- ------ ------ Total revenues 127,871 115,881 448,512 439,847 ------- ------- ------- ------- Expenses: Shopping center and operating expenses 44,259 41,444 155,415 149,844 Interest expense 32,529 26,269 111,276 104,119 Depreciation and amortization 25,474 22,115 106,435 96,441 ------ ------ ------- ------ Total operating expenses 102,262 89,828 373,126 350,404 ------- ------ ------- ------- (Loss) gain on sale or write down of assets (7,344) 160 (7,642) 3,432 Equity in income of joint ventures 248 446 416 956 --- --- --- --- Net income $18,513 $26,659 $68,160 $93,831 ------- ------- ------- ------- Reconciliation of Net (loss) income to FFO (f): --------------------------------------- For the Three For the Twelve Months Months Ended December 31, Ended December 31, --------------- --------------- Unaudited Unaudited ----------- ----------- 2009 2008 2009 2008 ---- ---- ---- ---- Net (loss) income - available to common stockholders ($14,376) $50,952 $120,742 $161,925 Adjustments to reconcile net (loss) income to FFO - basic Noncontrolling interests in OP (2,834) 8,179 17,517 27,230 Loss (gain) on sale or write down of consolidated assets 14,965 26,421 (121,766) (68,714) plus gain on undepreciated asset sales- consolidated assets 1,475 - 4,763 798 plus noncontrolling interests share of gain on sale or write- down of consolidated joint ventures - (404) 310 185 less write down of consolidated assets (210) (27,445) (28,439) (27,445) Loss (gain) on sale or write- down of assets from unconsolidated entities (pro rata) 7,344 (160) 7,642 (3,432) plus (loss) gain on undepreciated asset sales- unconsolidated entities (pro rata share) (128) 274 (152) 3,039 plus noncontrolling interests in gain on sale of unconsolidated entities - - - 487 less write down of assets - unconsolidated entities (pro rata share) (7,219) (94) (7,501) (94) Depreciation and amortization on consolidated assets 75,656 93,802 266,163 279,339 Less depreciation and amortization allocable to noncontrolling interests on consolidated joint ventures (4,624) (968) (7,871) (3,395) Depreciation and amortization on joint ventures (pro rata) 25,474 22,115 106,435 96,441 Less: depreciation on personal property (2,822) (2,793) (13,735) (9,952) ------ ------ ------- ------ Total FFO - basic 92,701 169,879 344,108 456,412 Additional adjustment to arrive at FFO - diluted Preferred stock dividends earned - - - 4,124 Preferred units - dividends - 197 - 979 --- --- --- --- Total FFO - diluted $92,701 $170,076 $344,108 $461,515 ------- -------- -------- -------- Reconciliation of EPS to FFO per diluted share: --------------------------------------- For the Three For the Twelve Months Months Ended December 31, Ended December 31, --------------- --------------- Unaudited Unaudited ----------- ----------- 2009 2008 2009 2008 ---- ---- ---- ---- Earnings per share - diluted ($0.18) $0.67 $1.45 $2.17 Per share impact of depreciation and amortization of real estate 0.91 1.27 3.77 4.17 Per share impact of loss (gain) on sale or write-down of depreciated assets 0.17 (0.02) (1.52) (1.12) Per share impact of preferred stock not dilutive to EPS - 0.00 - 0.00 --- ---- --- ---- FFO per share - diluted $0.90 $1.92 $3.70 $5.22 ----- ----- ----- ----- THE MACERICH COMPANY FINANCIAL HIGHLIGHTS (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) --------------------------------------- For the Three For the Twelve Reconciliation of Net (loss) Months Months income to EBITDA: Ended December 31, Ended December 31, --------------- --------------- Unaudited Unaudited ----------- ----------- 2009 2008 2009 2008 ---- ---- ---- ---- Net (loss) income - available to common stockholders ($14,376) $50,952 $120,742 $161,925 Interest expense - consolidated assets 59,408 74,860 267,039 295,160 Interest expense - unconsolidated entities (pro rata) 32,529 26,269 111,276 104,119 Depreciation and amortization - consolidated assets 75,656 93,802 266,163 279,339 Depreciation and amortization - unconsolidated entities (pro rata) 25,474 22,115 106,435 96,441 Noncontrolling interests in OP (2,834) 8,179 17,517 27,230 Less: Interest expense and depreciation and amortization allocable to noncontrolling interests on consolidated joint ventures (7,328) (1,721) (11,839) (5,344) Gain on early extinguishment of debt (15) (84,143) (29,161) (84,143) Loss (gain) on sale or write down of assets - consolidated assets 14,965 26,421 (121,766) (68,714) Loss (gain) on sale or write down of assets - unconsolidated entities (pro rata) 7,344 (160) 7,642 (3,432) Add: noncontrolling interests share of gain on sale of consolidated joint ventures 275 (404) 585 185 Add: noncontrolling interests share of gain on sale of unconsolidated entities - - - 487 Income tax (benefit) expense (3,883) 1,876 (4,761) 1,126 Distributions on preferred units 208 197 831 979 Preferred dividends - - - 4,124 -------- -------- -------- -------- EBITDA (g) $187,423 $218,243 $730,703 $809,482 -------- -------- -------- -------- Reconciliation of EBITDA to Same Centers - Net Operating Income ("NOI"): --------------------------------------- For the Three For the Twelve Months Months Ended December 31, Ended December 31, --------------- --------------- Unaudited Unaudited ----------- ----------- 2009 2008 2009 2008 ---- ---- ---- ---- EBITDA (g) $187,423 $218,243 $730,703 $809,482 Add: REIT general and administrative expenses 8,944 5,101 25,933 16,520 Management Companies' revenues (12,422) (10,382) (40,757) (40,716) Management Companies' operating expenses 20,602 19,185 79,305 77,072 Lease termination income of comparable centers (3,350) (1,379) (12,556) (9,642) EBITDA of non-comparable centers (43,172) (72,390) (112,963) (178,049) -------- -------- -------- -------- Same Centers - NOI (h) $158,025 $158,378 $669,665 $674,667 -------- -------- -------- -------- (g) EBITDA represents earnings before interest, income taxes, depreciation, amortization, noncontrolling interests, extraordinary items, gain (loss) on sale of assets and preferred dividends and includes joint ventures at their pro rata share. Management considers EBITDA to be an appropriate supplemental measure to net income because it helps investors understand the ability of the Company to incur and service debt and make capital expenditures. EBITDA should not be construed as an alternative to operating income as an indicator of the Company's operating performance, or to cash flows from operating activities (as determined in accordance with GAAP) or as a measure of liquidity. EBITDA, as presented, may not be comparable to similarly titled measurements reported by other companies. (h) The Company presents same-center NOI because the Company believes it is useful for investors to evaluate the operating performance of comparable centers. Same-center NOI is calculated using total EBITDA and subtracting out EBITDA from non-comparable centers and eliminating the management companies and the Company's general and administrative expenses. Same center NOI excludes the impact of straight-line and above/below market adjustments to minimum rents. DATASOURCE: The Macerich Company CONTACT: Arthur Coppola, Chairman and Chief Executive Officer, or Thomas E. O'Hern, Senior Executive Vice President and Chief Financial Officer, both of The Macerich Company, +1-310-394-6000 Web Site: http://www.macerich.com/

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